Reasonable sales discountWhat is a reasonable discount?

I hear people talk about 20%-40% discounts likes they’re no big deal because that’s what is needed to get people to remodel.

Uhmmm. Wow.

If you have to discount like that it’s time to invest in some books and some serious self-reflection because sales may not be your thing. And dealers discounting like that as a rule of thumb won’t be around much longer.

So what’s an appropriate discount?

Depends on what you get in return. If the prospect just needs a little bump to move, something in the 2% range is fine, if they sign today. If the deal is rather large, then maybe up to 5% could be justifiable. Anything North of that then the deal should be gargantuan and I’d be adding all sorts of things into the deal in exchange for the discount. Things like:

  1. A letter or testimonial from the customer you can use
  2. The ability to show the customer’s kitchen to new prospects
  3. A referral that I could use on the phone to close a future deal
  4. Some sort of announcement in the customer’s social media circles (Twitter, Facebook, Youtube, etc.) to their friends about the project’s success
  5. A certain % discount now and an additional % later after they refer a friend and they buy

If the prospect backs down on any of these things you ask for, then they’ll understand why that discount they are asking for isn’t reasonable.